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Don't bother trying to upgrade the firmware: Sony no longer supports the 505.
To use Calibre: import the books (I do this individually) into Calibre, then convert them to lrf, as the 505 prefers this format. When setting the details for the conversion, you'll see a box, (under the title and author part,) named "tags", put into this the name of the collection you want this to go into.
After conversion, ensuring that your reader is connected to your usb port, click "send to device" and send the lrf of the book to your ereader.
The tag will automatically create a collection on your ereader.
The 505 doesn't read pdf very well and the conversion can be hit and miss. If you really must read pdf, then read this on your pc or get a tablet. Otherwise, download the books as epub and convert to lrf.
If you need more detailed info about using Calibre go over to the Calibre section, that's where the real experts are.
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